
Studebaker Shop and Home 



Ashland, Ohio 
1835 



HISTORY OF 
The Studebaker Corporation 



BY 
ALBERT RUSSEL ERSKINE 



L 



Dedicated to the Memory of My Friend 
JOHN MOHLER STUDEBAKER 



THE STUDEBAKER CORPORATION 

General Offices: South Bend, Ind. 

Works: South Bend, Ind., Detroit, Mich., Chicago, 111., 

and Walkerville, Ont. 



DIRECTORS 

Frederick S. Fish, Chairman 

Waddill Catchings Herbert H. Lehman 

Frederick P. Delafield Philip Lehman 

A. R. Erskine L. J. Ollier 

F. Studebaker Fish Geo. M. Studebaker 

Henry Goldman J. M. Studebaker, Jr. 

C C. Hanch A. B. Thielens 

A. Barton Hepburn M. F. Wollering 



EXECUTIVE COMMITTEE 



Waddill Catchings 
Frederick P. Delafield 
A. R. Erskine 
Frederick S. Fish 



Herbert H. Lehman 
Geo. M. Studebaker 
J. M. Studebaker, Jr. 



FINANCE COMMITTEE 



A. R. Erskine 
Frederick S. Fish 
C. C. Hanch 



Geo. M. Studebaker 
M. F. Wollering 



OFFICERS 



Frederick S. Fish 
A. R. Erskine 
M. F. Wollering 
L. J. Ollier 
C. C. Hanch . 
H. E. Dalton 
A. G. Rumpf 
C. D. Fleming 
W. P. Shillington 
Geo. A. Fulmer . 
J. M. Peterson . 



Chairman of Board 
President 
Vice-President 
Vice-President 
Treasurer 
General Auditor 
Secretary 

Assistant Treasurer 
Assistant Treasurer 
Assistant Treasurer 
Assistant Treasurer 



Hawkins, Delafield and Longfellow, New York . . Counsel 
Touche, Niven & Co., New York and Chicago . . . Auditors 
Lawyers Title & Trust Co., New York . . . Transfer Agent 
Columbia Trust Co., New York . ...... Registrar 

First Trust & Savings Bank, Chicago . . . Transfer Agent 
Harris Trust & Savings Bank, Chicago . . . . . Registrar 



INDEX OF ILLUSTRATIONS 

PAGE 

First Studebaker Shop, Ashland, Ohio, 1835 .... 2 

John Studebaker 10 

Rebecca Mohler Studebaker 12 

Henry Studebaker 14 

Clement Studebaker 16 

John Mohler Studebaker 18 

Peter Everst Studebaker 20 

Jacob Franklin Studebaker 22 

Frederick Samuel Fish 24 

Henry Goldman 26 

H. & C. Studebaker Factory, South Bend, 1856 ... 28 
Interesting Advertisement; found in an old scrap book, 

in the handwriting of Clem Studebaker .... 30 

H. & C. Studebaker Factory, South Bend, 1868 ... 32 

Studebaker Branch House, St.Joseph, Mo., 1870 . . 34 

Studebaker Factories, South Bend, 1872 36 

Studebaker Factories, South Bend, 1876 38 

Studebaker Branch House, Chicago, 1885 40 

Studebaker Factories, South Bend, 1890 42 

Studebaker Factories, South Bend, 1900 44 

Y.M.C. A. Building, 1908 46 

Studebaker Factories, South Bend, 1910 48 

Studebaker Factories, South Bend, 1918 50 

Studebaker Foundries, South Bend, 1918 .... 52 

Studebaker Factories, Detroit, Plants Nos. 1 and 10, 1918 54 

Studebaker Factories, Detroit, Plant No. 2, 1918 . . 56 

Studebaker Factories, Detroit, Plants Nos. 3 and 4, 1918 58 

Studebaker Factories, Chicago, Plant No. 8, 1918 . . 60 

Studebaker Factories, Walkerville, Canada, 1918 62 

Studebaker Branch Houses, 1918 64 

Houses of Foreign Dealers, 1918 66 

Types of Studebaker Farm Wagons, 1918 . . . . .68 

Types of Studebaker Buggies, 1918 ...... 70 

Types of Studebaker Dump and Delivery Wagons, 1918 72 

Types of Studebaker Flushers and Oilers, 1918 ... 74 

Types of Studebaker Harness, 1918 76 

Relic in Studebaker Museum 78-80 

Types of Studebaker Electric Automobiles, 1902, 1912, 82-84 
Types of Studebaker Gasoline Automobiles, 1904 -1910, 86-88 
Types of Studebaker Automobiles, 1918 .... 90-94 

President Wilson's Message 96 



PREFACE 

THIS BOOK is written for the informa- 
tion of the 3,000 stockholders of 
The Studebaker Corporation, the 12,000 
dealers in its products living throughout 
the world, its 15,000 employees and 
numberless friends. 

Studebaker products have been manu- 
factured and sold for nearly seven 
decades, and its name is a household 
word wherever vehicles are used. There 
are few trade names in American industry 
older or more highly regarded than the 
name "Studebaker," which has always 
stood for quality and fair dealing, and 
this name today is the greatest asset the 
corporation owns. Buildings, machinery 
and operating organizations can be 
replaced for money, but an old and 
honored trade name can only be acquired 
by merit and through the lapse of time. 

During the past seven years The Stude- 
baker Corporation has spent ?6,000,000 
for advertising, yet it fully recognizes 
that the quality of its products and the 
satisfaction they give customers are, in 
the last analysis, the only safe foundation 
for the upbuilding and perpetuation of 
its name. It is the ambition of the author, 
who is its President, to continue the 
policies toward the public which will add 
luster to the name "Studebaker." 

South Bend f Indiana, A. R E. 

February 25, igi8 











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1 



John Studebaker 
1799-1877 



10 



THE STUDEBAKER BROTHERS 

^T^HE ancestors of the Studebaker 
•*- family first arrived in America at 
the port of Philadelphia on September 1, 
1736, on the ship Harle, from Rotter- 
dam, Holland, as shown by the original 
manuscripts now in the Pennsylvania 
State Library at Harrisburg, and included 
Peter Studebecker, age 38 years; Clement 
Studebecker, age 36 years; Henry Stude- 
becker, age 28 years; Anna Margetha 
Studebecker, age 38 years; Anna Cather- 
ine Studebecker, age 28 years. The last 
part of the name, "becker," was after- 
wards changed to " baker." The tax 
list of what was then Huntingdon Town- 
ship, York County, Pennsylvania, in 
1798-9, showed among the taxables were 
Peter Studebaker, Sr., and Peter Stude- 
baker, Jr., wagon-makers, which trade 
later became the foundation of the 
family fortune and the corporation which 
now bears the name. 

John Studebaker, father of the five 
brothers, born in Adams County, Penn- 

11 




Rebecca Mohler Stude baker 
1802-1887 



12 



THE STUDEBAKER BROTHERS 

sylvania, was the son of Peter Stude- 
baker. In 1830 he bought property near 
Gettysburg, Pennsylvania, on which he 
built a brick house and shop in which 
he pursued the trade of blacksmith and 
wagon builder. Becoming imbued with 
the pioneer spirit, he resolved to go 
West and grow up with the country. 
So he disposed of his property in 1835 
and moved with his family and worldly 
possessions to Ashland, Ohio, making 
the trip overland in three wagons, one 
of Conestoga pattern, drawn by four 
horses. Here he bought property and 
again established himself as a black- 
smith and wagon builder, working indus- 
triously and practicing frugality. Striv- 
ing for success, he encountered the hard- 
ships of those days, and for some years 
found life a hard struggle. With a 
small income and a large family, it was 
necessary for his wife to spin and weave 
the cloth and make the clothes of the 
family, which included ten children. 
Brighter days followed in later years, 

13 




Henry Studebaker 
1826-1895 



14 



THE STUDEBAKER BROTHERS 

and ultimately he and his wife moved 
to South Bend and lived there until 
their death. 

The boys were put to work early. On 
one occasion the three oldest boys drove 
fifty miles into an adjoining county and 
worked as harvest hands at small wages 
for some weeks. They returned home 
with sixty dollars, which they gave to 
their father. When the older boys 
became of age, their father urged upon 
them the importance of getting an inde- 
pendent start in life, so about 1850 
Henry and Clem went overland to South 
Bend, Indiana, where Clem taught school 
for a time and also worked at black- 
smithing for 50 cents per day. Here, in 
1852, the two brothers, under the firm 
name of H. & C. STUDEBAKER, began 
blacksmithing and wagon-building, with 
a capital of sixty-eight dollars and two 
forges. The first year they built two 
wagons, one of which was in constant 
daily use for thirty-three years. 

15 




Clement Studebaker 
1831-1901 



16 



THE STUDEBAKER BROTHERS 

John M. came to South Bend to join 
his brothers, but, meantime, gold had 
been discovered in California and thou- 
sands of venturesome men, traveling in 
wagons, were rushing out there to 
Eldorado in quest of fortune. These 
were the rosy pioneer days, and men 
were daring, so it was natural for young 
John M., then nineteen, to become 
interested. He determined to go, and 
he and his brothers built a wagon which 
he traded to an expedition for his passage 
and board. This was one of the wagons 
of the caravan which arrived at old 
Hangtown, Cal. (now Placerville), five 
months later, in good condition. They 
arrived in 1853, and in 1912, when 
John M. returned to Hangtown and 
gave a reunion dinner to the old settlers 
and friends of his youth, he recounted 
his experience in graphic words. He 
said: 

"We were more than five months on 
the road, and landed right here on this 
square in August, 1853, and I had but fifty 

17 




John Mohler Studebaker 
1833-1917 



18 



THE STUDEBAKER BROTHERS 

cents in my pocket. Although that was 
my only earthly possession, my spirit was 
not daunted, for we were all led to believe 
that all we had to do was to go out on the 
morrow and dig all the gold that the 
heart could desire. Of course, a big crowd 
gathered around us, and while we were 
trying to get them to talk about the gold 
mines, they insisted on asking questions 
about what had happened in the States since 
they had heard from their friends. While 
the hubbub was going on, a man came up 
and asked if there was a wagon-maker in 
the crowd of new arrivals. They pointed 
me out, and he asked, 'Are you a wagon- 
maker?' 'Yes sir,' I answered, as big as 
life, with my fifty-cent piece in my pocket. 
He offered me a job in his shop, and I 
replied, 'I came to California to mine for 
gold.' After he had gone, a man stepped 
up very politely and said, 'Will you let 
me give you a little advice, young man?' 
and upon my replying in the affirmative, 
continued, 'Take that job and take it 
quick'. His manner impressed me. He 
said that there would be plenty of time to 
dig gold, it wasn't always a sure thing, 
and that the job just offered me was a 
mighty fine chance for a stranger. I was 

19 




Peter Everst Studebaker 
1836-1897 



20 



THE STUDEBAKER BROTHERS 

impressed, and decided to go to work for 
the wagon-maker. He wanted me to make 
wheelbarrows for the miners, and arranged 
to pay me ten dollars each for my work. 
The tools were poor, and material only 
pitch pine lumber. I stuck to the job, 
made many wheelbarrows, and put my 
money in the bank. I soon found that 
hundreds and thousands of the pioneers 
who tried the mines never made a cent, 
but those who stuck to steady jobs at 
good wages and saved their money were 
doing well. We worked many a night all 
night, frequently making miners' picks 
and repairing stage coaches, which came in 
late, and had to get out at six o'clock in 
the morning." 

Meantime, back in South Bend, the 
little firm of H. & C. Studebaker was 
having a hard time financing its busi- 
ness, was confronted with judgments, 
and about to go under. They had few 
tools, bought their material as needed 
from a local hardware store, and usually 
traded their wagons to farmers for live 
stock or crops, or took notes in pay- 
ment. Money was scarce and seldom 

21 




** 



Jacob Franklin Studebaker 

1844-1887 



22 



THE STUDEBAKER BROTHERS 

obtained for sales. They appealed to 
John M. to come back to South Bend 
and join them in business. Accordingly, 
after five years of life in California, he 
yielded to their suggestions and took 
passage on a sailing ship for New York, 
via the Isthmus of Panama, with $8,000 
he had earned in gold nuggets sewed in 
a leather belt and strapped around his 
waist. Upon arrival at South Bend, he 
invested his money in the business and 
bought out the interest of his brother 
Henry, who being discouraged and pre- 
ferring a rural life, decided to retire and 
become a farmer. This new money 
rehabilitated the firm of H. & C. Stude- 
baker and assured its future prosperity. 
At that time, in 1858, the total assets 
of the firm were valued at $10,000. 

Peter E., the fourth brother, who had 
been a merchant in Goshen, Ind., shortly 
afterwards cast his lot with the firm 
and became an important factor in its 
management. 

23 




Frederick Samuel Fish 
chairman of board 



24 



THE STUDEBAKER BROTHERS 

During the next ten years the business 
prospered, and in 1867 the factory build- 
ings covered four acres of ground; 140 
mechanics were employed; the pay roll 
amounted to over #1,500 per week; and 
the inventory of material was sufficient 
for about six thousand vehicles. 



25 




Henry Goldman 



DIRECTOR 



26 



STUDEBAKER BROTHERS MFG. CO. 

/^\N January 1, 1868, the net tangible 
^^assets of H. & C. Studebaker 
amounted to $223,269.06, anc j the sales 
to about $350,000 annually. Thus had 
the business grown to such extent that 
it was determined to form a corporation, 
and, accordingly, Studebaker Brothers 
Manufacturing Company was organized 
March 26, 1868, under the statutes of 
Indiana, with a capital of $75,000, paid 
in one-third each by Clem, John M. and 
Peter E. Studebaker, who were elected 
directors. Clem was elected President, 
John M., Treasurer, and Peter E., 
Secretary, at annual salaries of $2,000 
each. 

The capital of the company in com- 
mon stock was increased by stock divi- 
dends in 1875 to $1,000,000, and in 
1896 to $3,600,000, and in 1906, $1,500,- 
000 six per cent preferred stock was 
issued for cash. 

27 




H. & C. Studebaker 

Factory 

1856 



28 



STUDEBAKER BROTHERS MFG. CO. 

In 1870 Jacob F. joined the company 
as a salesman, and about this time 
Peter E. was sent to St. Joseph, Mo., 
where he established a branch house to 
handle the trade of the pioneers, who 
were crossing the country in wagons in 
great numbers. Later, branches were 
established in Salt Lake City, San Fran- 
cisco, Kansas City, Portland, Dallas, 
Minneapolis, Chicago, New York, Denver 
and other large cities. 

Clem Studebaker, President of the 
company thirty-three years, was a public- 
spirited, high-minded man of democratic 
disposition, honored in his home town 
and by the Nation. In 1897, a reunion 
of former residents at Ashland, Ohio, 
was attended by 10,000 people, among 
whom were the three Studebaker brothers, 
it being their first visit since their 
removal nearly fifty years before. Clem 
was the spokesman for the family, and 
read a most interesting paper, reciting 
an unvarnished story of the early ups 

29 



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FACSIMILE OF AN OLD ADVERTISEMENT IN 

CLEM STUDEBAKER'S HANDWRITING; FOUND 

IN AN OLD SCRAP BOOK 

30 



STUDEBAKER BROTHERS MFG. CO. 

and downs of the family, its struggles 
and triumphs, and the poverty which 
had encompassed all. Seldom was told 
a more pathetic and realistic tale of the 
struggles of a pioneer family. His death, 
in 1901, at the age of seventy, was 
mourned by numberless friends through- 
out the land. A splendid memorial 
church, erected to his memory by his 
widow, adorns the city of South Bend, 
where he lived for fifty years. 

John M. Studebaker was in charge of 
the manufacturing department for forty- 
five years, during which time he per- 
sonally supervised the building of nearly 
all vehicles that left the factory. He 
built into these products his sturdy, 
honest character, and to this fact, per- 
haps more than any other, is due the 
world - wide confidence in Studebaker 
products. Upon the death of Clem, he 
succeeded to the presidency, but con- 
tinued to devote himself to the manu- 
facturing department with the intensity 

31 




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STUDEBAKER BROTHERS MFG. CO. 

and determination of purpose that was 
his chief characteristic. After a life of 
incessant industry and hard application, 
this philosopher and friend of man, 
crowned with worldly success and held 
in high esteem, the last of the five 
brothers, died at South Bend March 16, 
1917, aged eighty-three years. 

Peter E. Studebaker, a man of strong 
personality, affable and popular, was 
known throughout the country. Like 
his brothers, he never forgot the early 
hardships of his life, and upon one 
occasion, in delivering an address to a 
body of workmen, said: 

"Workmen, I know what it is to be 
poor, I know what it is to work for fifty 
cents a day and board myself; I know 
what it is to wish for the first white shirt; 
I know what it is to live week in and 
week out on mush and milk; I know 
what it is to sleep next to a clapboard 
roof and have the snow blow in and cover 
my head; I know what it is to stand on 
the outside of a circus tent and hear 

33 




First Studebaker Branch 

st. joseph, missouri 

1870 



34 



STUDEBAKER BROTHERS MFG. CO. 

the music and the clown within, and wish 
I had a quarter to take me in; I know 
more — I know what it is to look wishfully 
in a show case, filled with ginger-bread, 
and wish I had a penny to buy some. 
Knowing these things from hard experi- 
ence, I say it makes my blood boil to 
hear any man say one word that will 
tend to encourage a man in a waste of 
time and idleness." 

Peter E. Studebaker died in 1897, 
aged sixty-one years, the week following 
his return from the reunion at Ashland, 
and his death was a shock to the com- 
munity in which he lived. He was 
Vice-President of the company, and its 
manager, at the time of his death. 

The Studebaker brothers were all of 
philanthropic and generous disposition. 
Among their notable gifts is a 3250,000 
Y. M. C. A. building in the city of 
South Bend, presented in October, 1908, 
when the following resolution was passed 
by the directors of the company: 

35 




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STUDEBAKER BROTHERS MFG. CO. 

"Studebaker Brothers Manufacturing 
Company is prompted to this gift by a 
keen sense of the great worth resulting 
from the work of the Young Men's 
Christian Association in any community, 
by the desire to furnish a medium for the 
perpetuation of that work, and through 
this gift not only to conserve that purpose, 
but also to erect a perpetual monument 
to the memory of the five brothers — Henry, 
Clem, John M., Peter E. and Jacob F. 
Studebaker, whose business activity and 
industry, covering a period of more than 
half a century, contributed to the up- 
building of their community and the 
possibility for Studebaker Brothers Manu- 
facturing Company to make this contri- 
bution for the development of the well 
being and usefulness of young men." 

The Studebaker brothers were friends 
and associates of the early pioneers of 
Chicago, including such men as George M. 
Pullman, Nelson Morris, P. D. Armour, 
J. B. Forgan, Marshall Field and Cyrus H. 
McCormick, and were large investors 
in Chicago real estate, which in after years 
returned handsome profits to them and 

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STUDEBAKER BROTHERS MFG. CO. 

their children. They built the Stude- 
baker Repository, on Michigan Avenue, 
in 1885, which was the handsomest 
business building on the boulevard at 
that time, and later, in 1898, converted 
it into the Fine Arts Building, that has 
since served as a congenial home for the 
artists of Chicago in music, painting and 
sculpture, and includes the Studebaker 
Theatre and the Fine Arts Theatre. 

They also built large buildings for 
branch houses in Kansas City, Salt Lake 
City, Denver and Portland, and had 
others erected on long-term leases in 
New York City, San Francisco, Minne- 
apolis and elsewhere. 

In 1891 Frederick S. Fish, of Newark, 
N. J., who had married a daughter of 
J. M. Studebaker, associated himself 
with the three brothers in the conduct 
of the business, as a director and general 
counsel of the company. Mr. Fish was 
a practicing lawyer of New Jersey, 

39 




Studebaker Repository 
chicago, illinois 

1885 



40 



STUDEBAKER BROTHERS MFG. CO. 

admitted to its bar in 1876, and was 
president of the senate of New Jersey in 
1887. His business activities were largely 
in the direction of corporations, and 
particularly in the city of New York. 
In 1897, on the death of Peter Stude- 
baker, he became chairman of the execu- 
tive committee of the company, and 
thereafter was a dominating influence in 
the conduct of its affairs. Owing to his 
foresight, initiative and effort, the com- 
pany became interested in the horseless 
vehicle, and thereafter expanded into 
the automobile business, and ultimately 
merged into The Studebaker Corpora- 
tion. 

Sons and sons-in-law of the Studebaker 
brothers were active in the management 
of affairs. Col. George M. Studebaker, 
Clement Studebaker, Jr., J. M. Stude- 
baker, Jr., and Frederick Studebaker 
Fish served apprenticeships in different 
departments and rose to important official 
positions, with membership on the board. 

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42 



STUDEBAKER BROTHERS MFG. CO. 

Nelson J. Riley, from St. Joseph, Mo., 
Charles A. Carlisle, from Toledo, 
H. D. Johnson, from Monroe, Mich., and 
William R. Innis, from New York, sons- 
in-law, served many years in executive 
positions and upon the board. All of 
these men rendered valuable assistance 
in the conduct of the business. 

Col. Studebaker, J. M. Studebaker, Jr., 
and Frederick Studebaker Fish, all large 
stockholders, continue on the directorate, 
while the two former also serve as mem- 
bers of the executive committee. 

Being the world's largest producers 
of horse-drawn vehicles, it was inevi- 
table, with the advent of the automobile 
in the late 90's, that the company should 
become interested in this new vehicle 
and its possible bearing upon its future 
business. Hence, we find the company, 
in the spring of 1897, building and 
experimenting with a "horseless vehicle," 
as it was described in the minutes of the 

43 




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STUDEBAKER BROTHERS MFG. CO. 

directors of May 12th of that year, also 
in 1899, building bodies for electric runa- 
bouts made by another company. And, 
in 1902, actually launching into the 
building of electric runabouts and trucks, 
of which twenty were sold in that year, 
and a total of 1,841 up to 1912, when it 
abandoned electric machines. Also, in 
1904, the company began building gaso- 
line propelled automobiles, and during 
the next seven years built and sold 
2,481 passenger cars and trucks, the 
chassis of which were made on contract 
by another company, while the bodies 
were produced in its own plants at South 
Bend, and final assembly completed 
there. The sales value of the 4,322 electric 
and gasoline cars was 39,169,563.03. 
The first electric runabout produced was 
sold February 12, 1902, to F. W. Blees, 
of Macon, Mo., and the first gasoline 
car, a sixteen-horse-power two-cylinder 
machine, sold July 22, 1904, to H. D. 
Johnson, South Bend, Ind. Being assured 
of the future of the automobile, the 

45 




Y.M.C.A. 
A Studebaker Gift 

TO SOUTH BEND 
1908 



46 



STUDEBAKER BROTHERS MFG. CO. 

management now perceived the necessity 
of embarking into the business on a 
large scale commensurate with its posi- 
tion in the vehicle industry, and sufficient 
to employ the facilities of its large plants 
and its sales organization throughout 
the world. Moderately-priced automo- 
biles that could be built and sold in 
large quantities were the necessary 
answer to this problem, and therefore, in 
September, 1908, the company effected 
an agreement with the Everett-Metzger- 
Flanders Company, of Detroit, then being 
organized to manufacture machines of 
this character, under which it obtained 
exclusive rights for the sale of Stude- 
baker-E-M-F cars. It later acquired sub- 
stantial stockholdings in the Everett- 
Metzger-Flanders Company and, in 1910, 
complete ownership of its business, plants, 
assets and trade names. As will be seen 
in the succeeding chapter, this under- 
taking proved quite successful. Great 
automobile plants have since been 
constructed and acquired, in Detroit, 

47 




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48 



STUDEBAKER BROTHERS MFG. CO. 

Chicago and Walkerville, Ont., with a 
present capacity, including facilities at 
South Bend, of 100,000 automobiles per 
annum. 

During the forty- three years that 
Studebaker Brothers Manufacturing Com- 
pany operated as a corporation, it manu- 
factured and sold over one million horse- 
drawn vehicles of all kinds, and large 
quantities of harness, the total sales 
value of which amounted to 3119,249,000, 
as shown by the following table: 



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STUDEBAKER BROTHERS MFG. CO. 



SALES AND DIVIDENDS 

YEAR SALES DIVIDENDS 

1868 $ 360,619.25 

1869 463,246.76 

1870 566,212.46 

1871 608,614 .30 $107,587.48 

1872 687,963.55 

1873 820,019.59 

1874 761,116.95 

1875 1,032,040.96 150,000.00 

1876 996,846.05 

1877 1,107,269 .80 150,000 .00 

1878 1,180,872 .27 150,000 .00 

1879 1,199,908.24 100,000.00 

1880 1,526,143 . 09 100,000 .00 

1881 1,670,407.97 100,000.00 

1882 1,979,264.82 100,000.00 

1883 1,929,460.64 100,000.00 

1884 1,776,947.55 100,000.00 

1885 1,637,561 . 25 100,000 .00 

1886 1,892,602.89 100,000.00 

1887 2,155,512 .16 200,000 .00 

1888 2,039,461 .78 200,000 .00 

1889 2,098,396 .47 300,000 .00 

1890 2,161,094 .45 300,000 .00 

1891 2,236,578 .59 150,000 .00 

1892 2,299,605 .03 150,000 .00 

1893 1,896,176.02 

1894 1,636,341 .73 100,000 .00 

1895 2,291,183 .67 100,000 .00 

1896 2,014,205 .33 150,000 .00 

1897 2,785,255 .68 144,000 .00 

1898 3,227,716.91 • 180,000.00 

1899 3,995,519 .11 180,000 .00 

1900 . . 3,970,228 .48 216,000 .00 

1901 3,682,890 .89 216,000 .00 

1902 4,083,000.17 216,000.00 

1903 4,695,188.71 216,000.00 

1904 4,839,520 .68 216,000 .00 

1905 5,226,540.52 216,000.00 

1906 6,818,929 .23 216,000 .00 

1907 7,827,571 .92 306,000 .00 

1908 5,959,790 47 306,000 .00 

1909 9,507,915 .63 306,000 .00 

1910 9,603,661.32 816,500.68 



Totals 3119,249,403 .34 36,758,088 .16 



51 




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52 



STUDEBAKER BROTHERS MFG. CO. 

The original balance sheet of the com- 
pany and its closing balance sheet at 
the time of its merger into The Stude- 
baker Corporation, are given below: 

BALANCE SHEETS 

ASSETS Jan. 1, 1868 Dec. 31, 1910 

Cash 3 175.12 3 444,524.94 

Receivables 91,998.53 4,772,672.74 

Investments 600,019.13 

Inventories 123,864.91 12,305,285.30 

Plants and Property. . 64,175.00 5,984,697.11 

Deferred Charges 211,124.50 

Total 3280,213.56 524,318,323.72 

LIABILITIES 

Notes Payable 3 46,532.78 38,491,974.02 

Accounts Payable .... 10,411.72 1,382,386.58 

Minority Stock Sub. 

Co.'s 29,100.00 

First Mortgage 5% 

Bonds 2,700,000.00 

6% Preferred Stock 1,500,000.00 

Common Stock 3,600,000.00 

Surplus 223,269.06 6,614,863.12 

Total g280,213.56 324,318,323.72 

Net Worth 3223,269.06 311,714,863.12 

53 




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54 



EVERETT-METZGER-FLANDERS CO. 

^T^HE Everett-Metzger-Flanders Com- 
■*■ pany was incorporated under the 
laws of Michigan, August 4, 1908, with 
a capital stock of 3500,000, which was 
increased on October 7th of the same 
year to #1,000,000. The company was 
organized to manufacture and market in 
large quantities a medium-priced gaso- 
line propelled automobile. 

Promptly after the organization of the 
company, Studebaker made an arrange- 
ment with it under which Studebaker 
obtained certain exclusive rights to sell 
the product to be known as Studebaker- 
E-M-F cars. Studebaker shortly after- 
wards acquired substantial stockholdings 
in the company and in the following 
year purchased the remaining stock and 
became sole owner of the business. 

The company, immediately upon 
organization, acquired by purchase the 
plant, property and assets of the Wayne 
Automobile Company of Detroit, and 

55 




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56 



EVERETT-METZGER-FLANDERS CO. 

in October, 1908, the plants, property 
and assets of the Northern Automobile 
Company, of Detroit and Port Huron, 
increasing its capital stock from 3500,000 
to #1,000,000, to provide the necessary 
capital. The growth and expansion of 
the business was so rapid that the com- 
pany was compelled to increase its plants 
and facilities, and by October 1, 1909, it 
operated and owned the following plants : 

Wayne Automobile Company, 
of Detroit. 

Northern Motor Car Company, 

of Detroit and Port Huron. 

Deluxe Motor Car Company, 
of Detroit. 

Monroe Manufacturing Company, 
of Pontiac, Mich. 

Western Malleable Steel Company, 
of Detroit. 

Pressed Steel Sanitary Manufactur- 
ing Company of Detroit. 

Everett-Metzger-Flanders Company, 
of Canada. 

57 




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58 



EVERETT-METZGER-FLANDERS CO. 

The record of the company during its 
two and one-half years of operations 
shows the following remarkable results: 



Cars 
From Produced Sales Net profits 

Aug. 4, 1908, to 

Dec. 31, 1909 8,132 37,366,428.27 31,607,776. 17 

Year Ending 

Dec. 31, 1910 15,300 13,869,986.87 1,606,305.72 



Totals 23,432 321,236,415.14 §3,214,081.89 



Dividends Surplus 

Aug. 4, 1908, to 

Dec. 31, 1909 3314,824.00 31,292,952.17 

Year Ending 

Dec. 31, 1910 250,000.00 1,356,305.72 



Totals .3564,824.00 32,649,257.89 

The company was merged into The 
Studebaker Corporation as of December 
31, 1910, and the following balance sheets 
show its condition at the time of its 
formation and of its later merger: 



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EVERETT-METZGER-FLANDERS CO. 
BALANCE SHEETS 

Assets Aug. 4, 1908 Dec. 31, 1910 

Cash $ 52,322.59 $ 70,492.40 

Receivables 55,450.09 919,304.68 

Investments 142,494 . 16 

Inventories 95,738 . 28 2,338,134 . 62 

Plants and Property 153,438.77 3,827,293 .23 

Deferred Charges. . . 16,358.15 40,234.02 

Total £373,307.88 $7,337,953 .11 

Liabilities 

Notes Payable $ 17,873 .50 $1,765,262.67 

Accounts Payable. . . 94,434.38 1,923,432,55 

Capital Stock(Issued) 261,000 .00 1,000,000 .00 

Surplus , 2,649,257.89 

Total $373,307.88 $7,337,953 .11 

Net Worth $261,000.00 $3,649,257.89 



61 




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62 



THE STUDEBAKER CORPORATION 

'TTHE necessity for additional capital 
to finance the development of the 
automobile business required the organi- 
zation of The Studebaker Corporation, 
which acquired the business, plants, and 
trade names, of Studebaker Brothers 
Manufacturing Company and Everett- 
Metzger-Flanders Company and their 
subsidiary companies, as of December 
31, 1910. The Studebaker Corporation 
was incorporated February 14, 1911, 
under the laws of the State of New 
Jersey, with an authorized capitalization 
of 315,000,000 of 7 per cent cumulative 
preferred stock, of which 313,500,000 
was issued, and 330,000,000 of common 
stock, all issued, with par values 3100 
per share in each case. 



63 




Types of Branch Houses 
1918 



64 



THE STUDEBAKER CORPORATION 

The capitalized tangible assets of the 
merged companies were obtained from 
the following sources: 

Studebaker Bros. Mfg. Co. — 

Original capital and 

surplus of H. & 

C. Studebaker. . . 2 223,269.06 
Subscribed Capital 75,000.00 
6% Preferred Stock 

issue .. .. 1,500,000.00 

Surplus Profits 

(43 years) 9,916,594.06 



311,714,863.12 

Everett-Metzger-Flanders Co. — 
Original Capital . . .21,000,000.00 
Surplus Profits .... 2,649,257.89 33,649,257.89 

Tangible assets of merged com- 
panies .215,364,121.01 

To these assets were added the 
proceeds from the sale at par 
of a like amount of the 7% 
Preferred Stock of The Stude- 
baker Corporation, amounting to 8,328,602.35 

(Of this, 22,600,000 was used to 
retire outstanding First Mort- 
gage Bonds of S. B. M. Co.) 

Total assets of the new corporation 223,692,723.36 

65 




jfondon , {jnalGncL 



Houses of Foreign Dealers — 1918 



66 



THE STUDEBAKER CORPORATION 

These assets were distributed as follows: 

Cash 3 6,243,619.69 

Receivables 5,566,977 .42 

Investments 742,513 .29 

Inventories 14,643,419 .92 

Deferred Charges 251,358 . 52 

Total Quick Assets 327,447,888 .84 

Less all Liabilities 13,567,155 .82 

Working Capital 313,880,733 .02 

Plants and Property 9,811,990.34 

Total Tangible Assets .... 323,692,723.36 

Outstanding against these assets was 
the issue of 313,500,000 of preferred 
stock, for which the corporation received 
par from the bankers who purchased it, 
and ^30,000,000 of common stock. 

The financial reorganization of the 
Studebaker business was of an ultra- 
conservative character, in that preferred 
stock was issued for only 57 per cent of 
its net tangible assets, which gave the 
stock an original book value of 3175.50 

67 





Types of Studebaker Farm Wagons 



68 



THE STUDEBAKER CORPORATION 

per share, of which 3103.03 per share 
was represented by net quick assets. 
The common stock had an original book 
value of 336.49, of which $1.47 was net 
quick assets. 

As a result of the retention in the 
business of 50.9 per cent of the net profits 
of the past seven years, the book values 
of these stocks, December 31, 1917, were 
as follows: Preferred stock, $355.79 per 
share, of which $214.64 was represented 
by net quick assets. Common stock, 
after deduction of $100 for the preferred 
stock, $93.49 per share, of which $41.90 
was represented by net quick assets. 

The stocks of the corporation, both 
common and preferred, are listed on the 
New York, Chicago and Detroit Stock 
Exchanges. 

The charter of the corporation requires 
that annually, after July 1, 1912, 3 per 
cent of the largest amount in par value 
of preferred stock that shall have been 

69 




\ ,y 




Types of Stude baker Buggies 



70 



THE STUDEBAKER CORPORATION 

issued shall be set apart out of net profits 
in a special surplus and utilized for the 
purchase and retirement of preferred 
stock. In accordance with this provision, 
the corporation has during the past 
seven years purchased in the open 
market and canceled 25,350 shares of 
preferred stock at a cost of 32,548,654. 17, 
thereby fulfilling the requirements up to 
and including the fiscal year of 1918, and 
reducing the amount of preferred stock 
outstanding at present to 310,965,000. 

When the corporation was organized it 
assumed the indebtedness of the merged 
companies in notes payable amounting 
to 310,257,236.69; and although it re- 
ceived 35,728,602.35 new money at the 
same time, this money was needed to 
finance the immediate and continuous 
growth of the business. The sales of the 
merged companies in 1910, the last year 
of their operations, amounted to 323,- 
473,600, and if the sales of the new 

71 





Types of Studebaker Dump 
and Delivery Wagons 



72 



THE STUDEBAKER CORPORATION 

corporation had not greatly exceeded 
this figure, the fresh capital and future 
profits would have paid off a large part 
of the floating indebtedness in a few 
years. Instead of a moderate growth, 
the new corporation was immediately 
compelled to finance, in plant additions, 
increased inventories and increased 
receivables, a remarkable growth of busi- 
ness, as is shown by the appended table 
of sales: 



Nc 
Year 


>. Automobiles 
Sold 


local bales, 

Including Vehicles 

and Harness 


Increase Over 
1910 


1911 


22,555 


§28,487,900 


21.4% 


1912 


28,523 


35,440,300 


SO. 9% 


1913 


35,410 


41,464,900 


76.6% 


1914 


35,460 


43,444,200 


85 . 1% 


1915 


46,845 


56,539,000 


140.9% 


1916 


65,885 


61,988,600 


164.1% 


1917 


42,357 


50,147,500 


113.6% 


Totals 


277,035 


317,512,400 


93 . 2 (avg.) 



On March 1, 1912, a large part of the 
indebtedness was funded by the issu- 
ance and sale, on very favorable terms, 



73 





Types of Studebaker Flushers 
and Oilers 



74 



THE STUDEBAKER CORPORATION 

of 38,000,000 of five per cent ten-year 
serial gold notes, payable 3400,000 semi- 
annually, on September 1st and March 
1st, from 1912 to 1922. 

In the latter part of 1914, through 
increase of profits and heavy reduction 
in vehicle inventories, it was possible 
to anticipate payment of some of the 
serial notes, and at the end of that year, 
the entire floating debt, including serial 
notes, had been reduced to 37,400,000. 

The profits of the next two years per- 
mitted anticipating payment of the re- 
maining serial notes and all bank loans, so 
that by the spring of 1916 the corporation 
was entirely freed from floating debt. 
Additionally, it had also retired 32,535,000 
of preferred stock, and on June 1, 1915, 
had placed the common stock on a five 
per cent dividend basis, which was 
increased to 10 per cent on December 1st 
of the same year. This 10 per cent rate 
was continued until August 7, 1917, 



75 




■ '■^wi^^.&i' 




: 



Types of Studebaker Harness 



76 



THE STUDEBAKER CORPORATION 



when, on account of changed conditions 
resulting from the war, it was reduced 
to a 4 per cent basis. The 7 per cent 
dividends on the preferred stock have 
been regularly paid by the corporation 
from the date of its organization. 

The financing of the new corporation 
was handled by the banking firms of 
Goldman, Sachs & Co. and Lehman 
Bros., of New York City, which brought 
into its counsels and directory several 
representatives of these firms whose 
advice and support have proved invalu- 
able to the corporation. Most notable 
of these has been Henry Goldman, who, 
as a member of the executive committee, 
has kept himself constantly informed of 
all important matters affecting the busi- 
ness, and without compensation or re- 
ward, given it the benefit of his great 
ability. 

Shortly after the outbreak of the war 
in August, 1914, the English Govern- 
ment, which had used Studebaker wagons 

77 




General La Fayette's Carriage 

Used by him during tour of United States 
1824-1825 




President Lincoln's State Carriage 

Used during night of his assassination 

Relics in Studebaker Museum 



78 



THE STUDEBAKER CORPORATION 

in the Boer War, placed a cable order 
with the corporation for 3,000 transport 
wagons selected from its catalog, which 
order was filled in six weeks. Rapidly 
following came an order for 20,000 sets 
of six-horse English artillery harness and 
60,000 artillery saddles, probably the 
largest single order of its kind ever 
placed. The contract required this order 
to be completed within twenty weeks, 
and it was actually completed in sixteen. 
Orders followed for ambulances, drinking 
wagons, spare parts, and repeat orders 
on harness and saddles, while this gov- 
ernment bought hundreds of Studebaker 
cars from the Studebaker house in 
London. 

The corporation also received large 
orders for vehicles, harness and auto- 
mobiles from the French and Russian 
governments, all of which were filled 
satisfactorily to both parties. 

With the entry of our own government 
into the war, the corporation instantly 

79 




General Grant's Carriage 

Used during his last term 
1873-1877 




Old Studebaker Phaeton 

Built by H. & C. Studebaker in 1857 



Relics in Studebaker Museum 



80 



THE STUDEBAKER CORPORATION 

placed its plants at the disposal of the 
President, and later delegated two of its 
executives upon important committee 
work, whose purpose it was to mobilize 
raw materials, control prices to be paid 
by the Government and assist it in obtain- 
ing its requirements promptly. 

At the present time the corporation is 
devoting half of its plant capacity to Gov- 
ernment work, covering orders for large 
quantities of military supplies of a char- 
acter suited to our equipment and in line 
with our manufacturing experience. 

To handle this work, it became neces- 
sary to reduce our regular manufacturing 
schedules of automobiles and vehicles 
and rearrange our plants on a war basis. 
This undertaking involved some unusual 
expenses and consumed considerable time, 
but it is now well accomplished, and we 
feel gratified at having voluntarily met 
the issue and placed ourselves in position 
to serve our Government as long as the 

81 




RUNABOUT 
1902 




PANEL DELIVERY 
1904 



Types of Studebaker Electric 
Automobiles 



82 



THE STUDEBAKER CORPORATION 

war may last, freely and without com- 
pulsion. 

Ample evidence is gradually being dis- 
closed that substantial use and service 
is expected by the Government from the 
automobile plants of the country, which 
are accordingly reducing their output of 
passenger automobiles. 

To what extent this situation will 
finally curtail the total production 
of passenger cars, depends upon the 
duration of the war, but as we have 
adjusted ourselves to conditions, we hope 
to maintain our business in a healthy 
condition, and be prepared to take 
prompt advantage of the opportunities 
that will be open to us when peace returns. 

A review of the results of the business 
of the corporation for the seven years 
ending December 31, 1917, discloses many 
interesting facts, of which the following 
are most important: 

83 




VICTORIA-PHAETON 
1908 




COUPE 
1912 

Types of Studebaker Electric 
Automobiles 



84 



THE STUDEBAKER CORPORATION 

Its seven plants at South Bend, Detroit, 
Chicago, and Walkerville, Ont., cover 
167.89 acres, contain 4,704,118 square 
feet of floor space, and after charging off 
32,193,048.30 for depreciation, represent 
an investment of 315,477,186.41. 







Acres 


Square feet 


South Bern 


i Plants 


131.90 


2,642,581 


Detroit Plant No.l .... 


6.61 


518,757 


a a 


No.2 .... 


1.88 


112,171 


a a 


No.3 & 4 


16.66 


883,241 


it a 


No.10. .. 


3.24 


140,630 


Chicago " 


No.8 .... 


4.84 


304,400 


Walkerville. 


, Ont., Plant 


2.76 


102,338 


Totals 


167.89 


4.704,118 



The annual capacity of these plants is 
100,000 automobiles, 75,000 horse-drawn 
vehicles, and about 310,000,000 worth of 
automobile and vehicle spare parts and 
harness. 

The products include a complete line 
of passenger automobiles, with a line of 
trucks in contemplation, and complete 
lines of farm wagons, dump wagons, heavy 
service wagons, sprinklers, flushers, bug- 
gies and harness. 

85 




STUDEBAKER "TWO" 
1904 




STUDEBAKER "FOUR" 
1908 



Types of Studebaker Gasoline 
Automobiles 



86 



THE STUDEBAKER CORPORATION 

The industrial pay rolls for 1917 
amounted to 38,677,456.00 and the aver- 
age number of employees was 9,444. 

The average number of employees on 
the administrative and commercial pay 
rolls during last year was 2,830 and 
the salary roll was 23,526,404.00. 

The total salary and pay rolls were 
312,203,860.00 and average number of 
persons employed was 12,274. 

There were 6,000 dealers and 26 
branch houses handling Studebaker auto- 
mobiles throughout the world at the 
close of the year. 

There were 6,000 dealers and 8 branch 
houses handling Studebaker vehicles and 
harness throughout the world at the close 
of the year. 

There were 277,035 automobiles and 

466,962 horse drawn vehicles sold in the 
seven years. 

The total sales during that period 
amounted to 3317,512,400. 

87 




STUDEBAKER "30" 
1908 




STUDEBAKER "20" 
1910 



Types of Studebaker Gasoline 
Automobiles 



88 



THE STUDEBAKER CORPORATION 

The total net profits amounted to 
330,126,600, which was 9.5 per cent of 
the sales. These net profits were disposed 
of as follows: 

Total 
The regular 7% dividends 

paid to preferred stock- 
holders amounted to 19.2% 

(the preferred stock 
dividend was earned 5.2 

times annually.) 

• 

The dividends paid to 
common stockholders 

amounted to 21.5% 

(after deducting pre- 
ferred dividends, the 
amount remaining for 
the common stock 
averaged 11.6% an- 
nually.) 

The amount paid to pur- 
chase and retire pre- 
ferred stock was 8.4% 

The amount of net profits 
kept in the business 
and used to discharge 
debt and finance 
growth was 50.9% 

Total 100% 

89 




Studebaker Delivery Wagon 

1917 




Studebaker Light Four 

Weight, 2400 lbs. 
1918 



90 



THE STUDEBAKER CORPORATION 

Appended are condensed balance sheets 
showing the condition of the corporation 
as of the date of its formation and as of 
December 31, 1917, from which greatly 
increased financial strength is evidenced. 



91 




Studebaker Light Six 

Weight, 2925 lbs. 
1913 




Studebaker Light Six 

Weight, 2800 lbs. 

1918 



92 



THE STUDEBAKER CORPORATION 



BALANCE SHEETS 

ASSETS Dec. 31, 1917 Dec. 31, 1910 

Cash ..$ 2,528,555.07 $ 6,243,619.69 

Receivables . 9,325,498 . 96 5,566,977.42 

Investments 847,672. 17 742,513.29 

Inventories 21,322,134.35 14,643,419.92 

Deferred Charges 358,683.81 251,358.52 

Quick Assets . .334,382,544.36 327,447,888.84 

Plants and 

Property $15,477,186.41 $ 9,811,990.34 

Good Will, Trade 

Marks, etc .... 19,807,276 . 64 19,807,276.64 

Total $69,667,007.41 $57,067,155.82 



LIABILITIES 

Notes Payable.. $ 7,400,000.00 $10,257,236.69 
Other Payables. . 3,447,277.78 3,309,919.13 

Current Lia- 
bilities .$10,847,277.78 £13,567,155.82 

Preferred Stock. .$10,965,000.00 £13,500,000.00 

Common Stock. . 30,000,000.00 30,000,000.00 

Surplus and 

Reserves 17,854,729.63 

Total $69,667,007.41 $57,067,155.82 

93 



THE STUDEBAKER CORPORATION 

Summarizing the important features of 
the foregoing balance sheets, it will be 
seen: 

That the net tangible assets (exclusive 
of trade name and good will) are $39,012,- 
452.99, an increase of $15,319,729.63. 

That the working capital (the differ- 
ence between the total quick assets and 
all liabilities) amounts to $23,535,266.58, 
an increase of $9,654,533.56. 

That the total capitalization is $40,965,- 
000, a decrease of $2,535,000, due to the 
retirement of preferred stock. 

That the floating debt is $7,400,000, 
a decrease of $2,857,236.69. 

That the ratio of quick assets to all 
liabilities is 317 per cent, an increase of 
56.1 per cent. 

95 



ORIGINAL _ 



To the President. 
The White House, 
Washington, D.c. 

f?^^&.* sssr^s ?- -p°- o, the 

olear right of way. glT8n U8 wil1 receive preference and 




96 



THE STUDEBAKER CORPORATION 

That the plant and property account 
is 315,477,186.41, an increase of $5,665,- 
196.07 or 57.7 per cent. This small 
increase of plant and property account 
compares with increases in the volume 
of output or sales, over 1910, amounting 
to 164.1 per cent in 1916 and 113.6 per 
cent in 1917, as shown on page 73. 

The House of Studebaker has existed 
sixty-five years. 

Industry, economy and patience char- 
acterized the Studebaker brothers, whose 
hearts, as well as heads, were in their 
business. Profits were always secondary 
to the conservation of reputation and 
good will, and hence we find that during 
the forty-three years in which they 
operated under the name of Studebaker 
Brothers Manufacturing Company, they 
and their stockholders withdrew only 
six million dollars of dividends from net 
profits of sixteen million dollars, and left 
the larger part of ten million dollars 
remaining in the business. 

97 



POOLE BROS. CHICAGO. 



JEW 



m lif 



80 



82 



84 



86 



88 



90 





EGONRULECO.ll 



U.S.A. 






